Screenshot is taken directly from the headset. The game is streamed to the headset wirelessly via Virtual Desktop app with the new foveated streaming feature (you can see the cutoff on the periphery where stuff starts to be more blurry / compressed). In the headset scenes like this (Low lighting with soft shadows) looks extremely atmospheric and really incredible because of the micro oled display and thanks to the new foveated streaming / encoding i finally can safely say compression artefact in wireless PCVR is a thing of the past.
It's the difference between breasts or absence of them.
Edit: To be more serious, it means different things for different people but for me partially modded would be only mods of cosmetics nature, while if in addition to that the gameplay and combats are totally overhauled then i would consider it fully modded.